Low RiskDFARSconstruction

252.236-7004Payment for mobilization and demobilization.

Researched by the BidStride Research Team

What This Clause Requires

DFARS 252.236-7004 — Payment for mobilization and demobilization.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

Official Regulation Text

252.236-7004 Payment for mobilization and demobilization. As prescribed in 236.570(b)(2), use the following clause: Payment for Mobilization and Demobilization (DEC 1991) (a) The Government will pay all costs for the mobilization and demobilization of all of the Contractor's plant and equipment at the contract lump sum price for this item. (1) ________ percent of the lump sum price upon completion of the contractor's mobilization at the work site. (2) The remaining ________ percent upon completion of demobilization. (b) The Contracting Officer may require the Contractor to furnish cost data to justify this portion of the bid if the Contracting Officer believes that the percentages in paragraphs (a) (1) and (2) of this clause do not bear a reasonable relation to the cost of the work in this contract. (1) Failure to justify such price to the satisfaction of the Contracting Officer will result in payment, as determined by the Contracting Officer, of— (i) Actual mobilization costs at completion of mobilization; (ii) Actual demobilization costs at completion of demobilization; and (iii) The remainder of this item in the final payment under this contract. (2) The Contracting Officer's determination of the actual costs in paragraph (b)(1) of this clause is not subject to appeal. (End of clause)

Source: eCFR, 48 CFR 252.236-7004 (https://www.ecfr.gov/current/title-48/section-252.236-7004)

Compliance Checklist

  • (b) The Contracting Officer may require the Contractor to furnish cost data to justify this portion of the bid if the Contracting Officer believes that the percentages in paragraphs (a) (1) and (2) of this clause do not bear a reasonable relation to the cost of the work in this contract.

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.